Diesel and gas generators are experiencing a sales boom across Africa and Asia as they step in to backfill unforeseen power shortages in developing countries.
According to GlobalData’s report ‘Diesel and Gas Generator 2012’, by 2020 the worldwide market for diesel and gas gensets is forecast to almost double in value to reach US$22.3 billion, up from a 2011 valuation of US$12 billion; growing at a compound annual growth rate (CAGR) of 7.1% in the period 2011-2020.
The gas segment of the global genset market, in particular, is expected to “display impressive growth during the current decade,” the report reads. India and China are both facing a considerable power supply-demand gap and between them the two countries have a 30% market share in the global genset market.
Utilities in India are stepping up demand for diesel and gas generators to avert a reoccurrence of recent blackouts. Nigeria is currently the largest market for gensets in Africa, mostly due to “the inability of the Power Holding Company of Nigeria (PHCN) to supply adequate power to meet the growing demand,” GlobalData’s report states.
As a result, the genset market in Nigeria has grown substantially over the last decade, from a moderate size in the 1990s. Analysts expect the Nigerian genset market to grow at a CAGR of 8.7% from US$450m in 2011, to reach US$950.7m by 2020.